The new way to bailout banks or the Italian recipe

Setting the value by decree is part of the central banking planning  and   it just happend in Italy by changing the “market value” of the BOI and changing the ownership rules.  But the interesting part is what could come afterwards…..  The resulting improved capital ratio of the banks will provide enough fuel for them to leverage buying Italian debt when nobody will want.  Now just keep in mind that the FED is also privately owned !

as Reuters reports.   http://www.reuters.com/article/2014/01/31/intesa-unicredit-centralbank-stake-idUSL5N0L53LR20140131

“Jan 31 (Reuters) – Italian banks Intesa Sanpaolo and UniCredit could cash in up to 3.5 billion euros ($4.7 billion) combined from the sale of part of their revalued stakes in the central bank, according to analyst calculations.

The Italian parliament on Wednesday gave final approval to a decree hiking the value of Bank of Italy’s (BOI) share capital to 7.5 billion euros from 156,000 euros previously, which had not been changed since the 1930s…..”

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